Montana Food Bank Network

Transcription

1 Audited Financial Statements Junkermier h Clark Campanella h Stevens h P.C. Certified Public Accountants and Business Advisors

2 Contents Page INDEPENDENT AUDITORS' REPORT 3 FINANCIAL STATEMENTS Statements of financial position 4 Statements of activities 5-6 Statements of functional expenses 7-8 Statements of cash flows 9 NOTES TO FINANCIAL STATEMENTS Notes to financial statements 10-17

3 Junkermier Clark Campanella Stevens P.C. Certified Public Accountants and Business Advisors 2620 Connery Way P.O. Box Missoula, MT Ph. (406) Fx. (406) INDEPENDENT AUDITORS' REPORT Board of Directors and Management Missoula, Montana We have audited the accompanying financial statements of (a nonprofit corporation), which comprise the statements of financial position as of June 30, 2015 and 2014, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free of material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of, as of June 30, 2015 and 2014, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Junkermier, Clark, Campanella, Stevens, P.C. Missoula, Montana September 23, Bozeman Great Falls Hamilton Helena Kalispell Missoula Whitefish

4 Statements of Financial Position June 30, 2015 and Assets Current assets Cash and cash equivalents $ 1,121,462 $ 1,476,647 Accounts receivable 39,154 18,879 Grants receivable 21,333 8,400 Inventories 666, ,986 Prepaid expenses 18,699 8,468 Total current assets 1,867,476 2,135,380 Property and equipment, net 1,435,342 1,542,558 Investments 596, Total assets $ 3,899,798 $ 3,678,061 Liabilities and Net Assets Current liabilities Accounts payable $ 99,321 $ 76,149 Accrued liabilities 30,457 21,866 Mortgages payable, current 23,741 22,937 Total current liabilities 153, ,952 Long-term liabilities Mortgages payable, net of current portion 246, ,276 Total liabilities 400, ,228 Net assets Unrestricted 3,317,599 3,109,750 Temporarily restricted 182, ,083 Total net assets 3,499,744 3,286,833 Total liabilities and net assets $ 3,899,798 $ 3,678,061 The accompanying notes are an integral part of these financial statements. -4-

5 Statement of Activities For the Year Ended June 30, 2015 Unrestricted Activities Temporarily Restricted Activities Total Public support and revenue Public support Value of donated food $ 10,221,442 $ - $ 10,221,442 Contributions 1,461,265 18,128 1,479,393 Contributions - in-kind 2,488-2,488 Grants 420, , ,523 Special events 128,697 21, ,697 Net assets released from restriction 376,966 (376,966) - Total public support 12,611,481 5,062 12,616,543 Revenue Shared maintenance fees 186, ,944 Partnership food sales 636, ,068 Other revenue 15,663-15,663 Total revenue 838, ,675 Total public support and revenue 13,450,156 5,062 13,455,218 Expenses Program services Value of donated food distributed 10,230,565-10,230,565 Food distribution 1,868,623-1,868,623 Public policy 144, ,635 Total program services 12,243,823-12,243,823 Support services Administration 149, ,362 Fundraising 849, ,122 Total support services 998, ,484 Total program and support services 13,242,307-13,242,307 Change in net assets 207,849 5, ,911 Net assets - beginning of year 3,109, ,083 3,286,833 Net assets - end of year $ 3,317,599 $ 182,145 $ 3,499,744 The accompanying notes are an integral part of these financial statements. -5-

6 Statement of Activities For the Year Ended June 30, 2014 Unrestricted Activities Temporarily Restricted Activities Total Public support and revenue Public support Value of donated food $ 10,450,446 $ - $ 10,450,446 Contributions 1,371,551 17,620 1,389,171 Contributions - in-kind 6,267-6,267 Grants 697, ,093 1,001,689 Special events 98,395 27, ,095 Net assets released from restriction 354,223 (354,223) - Total public support 12,978,478 (4,810) 12,973,668 Revenue Shared maintenance fees 232, ,692 Partnership food sales 379, ,068 Other revenue 12, ,753 Total revenue 624, ,513 Total public support and revenue 13,602,867 (4,686) 13,598,181 Expenses Program services Value of donated food distributed 10,632,862-10,632,862 Food distribution 1,633,610-1,633,610 Public policy 218, ,669 Total program services 12,485,141-12,485,141 Support services Administration 182, ,830 Fundraising 752, ,859 Total support services 935, ,689 Total program and support services 13,420,830-13,420,830 Change in net assets 182,037 (4,686) 177,351 Net assets - beginning of year 2,927, ,769 3,109,482 Net assets - end of year $ 3,109,750 $ 177,083 $ 3,286,833 The accompanying notes are an integral part of these financial statements. -6-

7 Statement of Functional Expenses For the Year Ended June 30, 2015 Food Distribution Public Policy General and Administrative Fundraising Total Value of donated food distributed $ 10,230,565 $ - $ - $ - $ 10,230,565 Cost of food delivered 1,034, ,034,635 Salaries 321,250 97,463 81, , ,562 Payroll taxes 39,485 10,385 8,435 16,643 74,948 Employee benefits 37,191 7,812 7,420 15,219 67,642 Training 7,068 2,346 6,223 2,141 17,778 Travel 7,879 3,788 2,206 2,935 16,808 Supplies 12,228 2,074 1,774 7,991 24,067 Printing and publications 467 6, , ,118 Postage and delivery 1,488 2,157 1,033 96, ,649 Telephone 6,484 1, ,377 10,247 Advertising - 2,492-1,858 4,350 Contract services 63,473 1,097 16, , ,498 Professional fees ,235-14,235 Conference and meeting costs 2,844 1, ,323 Agency grants 21, ,895 Insurance 15,956 1,404 2,896 4,780 25,036 Dues and subscriptions 10, ,081 13,659 Utilities 29, ,338 Equipment purchases 3, , ,108 Depreciation 163,791 1,190 2,218 4, ,878 Repairs and maintenance 40, ,458 Fuel, oil, and gas 38, ,367 Interest 11, ,987 Bank and finance charges ,292 8,333 Other Total expenses $ 12,099,188 $ 144,635 $ 149,362 $ 849,122 $ 13,242,307 Percentage of total expenses 91 % 2 % 1 % 6 % 100 % The accompanying notes are an integral part of these financial statements. -7-

8 Statement of Functional Expenses For the Year Ended June 30, 2014 Food Distribution Public Policy General and Administrative Fundraising Total Value of donated food distributed $ 10,632,862 $ - $ - $ - $ 10,632,862 Cost of food delivered 929, ,043 Salaries 299,665 96, , , ,877 Payroll taxes 36,684 9,834 9,741 13,566 69,825 Employee benefits 31,463 5,860 9,198 8,376 54,897 Training 5,467 3,116 5,878 1,332 15,793 Travel 8,733 6,352 4,176 2,749 22,010 Supplies 10,661 2,551 2,337 8,264 23,813 Printing and publications 1,131 2, , ,497 Postage and delivery 1,216 1, ,976 96,730 Telephone 5,953 1,222 1,014 1,418 9,607 Advertising - 7, ,366 Contract services 17,043 37,680 5,379 76, ,854 Professional fees ,676-12,676 Conference and meeting costs 2,348 3, ,108 Agency grants 1,790 35,301-20,000 57,091 Insurance 15,378 1,448 2,582 1,691 21,099 Dues and subscriptions 9, ,268 2,648 13,878 Utilities 29, ,256 Equipment purchases 2, ,356 Depreciation 138,563 1,607 1,160 5, ,563 Repairs and maintenance 37, ,913 Fuel, oil, and gas 35, ,912 Interest 12, ,934 Bank and finance charges ,082 6,175 Other 802-2,430 4,463 7,695 Total expenses $ 12,266,217 $ 218,751 $ 162,896 $ 772,966 $ 13,420,830 Percentage of total expenses 91 % 2 % 1 % 6 % 100 % The accompanying notes are an integral part of these financial statements. -8-

9 Statements of Cash Flows For the Cash flows from operating activities Change in net assets $ 212,911 $ 177,351 Adjustments to reconcile change in net assets to net cash from operating activities Depreciation 171, ,563 Loss on disposal of assets Unrealized loss on investments 3,143 - Changes in operating assets and liabilities Receivables (33,208) (8,337) Inventories (43,842) 69,932 Prepaid expenses (10,231) (3,825) Accounts payable 23,172 35,246 Accrued liabilities 8,591 4,127 Net cash from operating activities 333, ,102 Cash flows from investing activities Purchase of property and equipment (66,069) (174,049) Proceeds from sales of property and equipment Net (purchases) of investments and reinvestments (600,000) 41,131 Net cash from investing activities (665,269) (132,918) Cash flows from financing activities Payments on long-term debt (22,937) (21,988) Net cash from financing activities (22,937) (21,988) Net change in cash (355,185) 266,196 Cash and cash equivalents - beginning of year 1,476,647 1,210,451 Cash and cash equivalents - end of year $ 1,121,462 $ 1,476,647 Supplemental Disclosures Cash paid for interest $ 11,987 $ 12,934 The accompanying notes are an integral part of these financial statements. -9-

10 Notes to Financial Statements 1. Organization and Summary of Significant Accounting Policies Organization The, Inc. ("MFBN") ("the Organization") is a nonprofit, tax-exempt section 501(c)(3) organization whose vision is building a unified force to address hunger in Montana. The mission of MFBN is working to eliminate hunger in Montana through food acquisition and distribution, education and advocacy. It acts to accomplish its mission by soliciting, warehousing and transporting and distributing food to charitable programs that directly serve needy families, children and seniors in the State of Montana. The Organization partners with 218 agencies across the State of Montana which includes community operated food banks, food pantries, soup kitchens, senior centers, day care centers, rehabilitation facilities and group homes. MFBN coordinates the hunger-relief work of its Partner Agencies through promoting hunger awareness in Montana, maintenance of publications and resources, facilitating a state-wide system for the transportation and storage of food, and providing education on hunger-related issues. The following are the major programs of the Organization. Food Distribution - MFBN solicits food donations from the food industry, Feeding America (the national food bank system, formerly known as America s Second Harvest), Montana retailers and wholesalers, and produce recovery efforts through statewide and regional farmers. The Organization is contracted by the U.S. Department of Agriculture and the State of Montana to warehouse and distribute The Emergency Food Assistance Program ("TEFAP") commodity food. The Organization also purchases food with grant and donated funds at wholesale cost for benefit of its Partner Agencies. Donated, commodity and purchased food is then transported, warehoused and distributed to charitable programs that directly serve needy people throughout all 56 counties in the State of Montana. Complimentary to its Food Distribution model, MFBN also fights hunger by providing a Mobile Food Pantry that distributes food to unserved and underserved communities in Montana. In an effort to combat childhood hunger, the Organization has begun a Backpack Program in local area counties to provide healthy food that income-qualified students at risk of hunger can take home and eat over the weekend and during school holidays. Public Policy Program - MFBN promotes sustainable solutions to hunger and works to address longterm chronic hunger issues. The Organization aims to improve access to adequate nutrition among Montanans with limited income by increasing awareness about and access to public nutrition programs through application assistance workshops, community meetings and working with those interested in applying. The Organization also collects and monitors data on hunger, food insecurity, and access to affordable healthy food. The Organization promotes public awareness and encourages Montanans to make the hunger issue a priority by establishing an ongoing dialogue about ways to end hunger in our communities. MFBN s Food Security Council ("the Council") provides a forum for discussion and sharing best practices among anti-hunger leaders. The Council serves to identify barriers that create food insecurity, gaps in services, and the need for program development throughout the state. Basis of Accounting The Organization's financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. -10-

11 Notes to Financial Statements 1. Organization and Summary of Significant Accounting Policies (Continued) Classification of Net Assets The financial statement presentation follows the recommendation of Financial Accounting Standards Board Accounting Standards Codification 958, Not for Profit Entities (FASB ASC 958). Under ASC 958, MFBN is required to report information regarding its financial information and activities according to three classes of net assets: unrestricted net assets, which represent the expendable resources that are available for operations at management's discretion; temporarily restricted net assets, which represent resources restricted by donors as to purpose or by passage of time; and permanently restricted net assets, which represent resources whose use by MFBN is limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of MFBN. The Organization presently has no permanently restricted net assets. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. Cash and Cash Equivalents For the purposes of the statements of cash flows, the Organization considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Organization maintains various accounts at local banks that are insured by the Federal Deposit Insurance Corporation (FDIC). The Organization's bank accounts may exceed the FDIC limits at various times during the year. The Organization believes they are not exposed to any significant credit risk on cash balances. Investments Investments are composed of money market funds, common stock, and bonds purchased through and held by a third party investment manager and are reported at fair value based on quoted market prices. Interest and dividend income, as well as, gain and losses on these investments are included in other income. The Organization determined the fair value of its investments through the application of FASB ASC 820, Fair Value Measurements and Disclosures as discussed in Note 2. Risks and Uncertainties The Organization invests in various investment securities. Investment securities are exposed to various risks, such as interest rate, credit, and market risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the investment balances and the amounts reported in the statements of financial position. Accounts and Grants Receivable The Organization uses the allowance method for uncollectible receivables. Accounts and grants receivable are stated at the amount management expects to collect from outstanding balances. Balances that are still outstanding after management has used reasonable collection efforts are written off. Bad debts of zero and $703 were recorded for the years ended June 30, 2015 and 2014, respectively. Management estimates the allowance for doubtful accounts to be zero at June 30, 2015 and Inventory Inventories consist of food that has been donated or purchased during the current year and has not yet been distributed. In accordance with Feeding America's Product Valuation Survey, donated inventory items are valued at $1.70 and $1.72 per pound as of June 30, 2015 and 2014, respectively. -11-

12 Notes to Financial Statements 1. Organization and Summary of Significant Accounting Policies (Continued) Property and Equipment Property and equipment are stated at cost at the date of purchase or fair value at the date of donation. Depreciation is computed using the straight line method over the estimated useful lives of the assets, which ranges from 5-7 years for equipment to 39 years for buildings. The Organization capitalizes all expenditures for property and equipment equal to or greater than $1,000 and having a useful life exceeding one year. Donated Goods and Services MFBN reports gifts of donated food and grocery products over which it has control (i.e. variance power) as unrestricted public support and, shortly thereafter, as an expense when granted to MFBN agencies. In addition, many individuals and organizations have made in-kind donations or volunteered their services to MFBN. Accounting principles generally accepted in the United States of America requires recognition of professional services received if those services (a) create or enhance long-lived assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. In-kind donations consisting of donated printing and other qualifying services were $2,488 and $6,267 for the years ended June 30, 2015 and 2014, respectively. Additionally, many individuals volunteer their time and skills to perform a variety of tasks that assist MFBN, but these services do not meet the criteria for recognition as contributed services. The estimated value of services that do not meet the criteria for recognition was $154,037 and $192,256 for the years ended June and 2014, respectively. Contributions All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or are restricted by the donor for specific purposes are reported as temporarily restricted. Contributions, including unconditional pledges, are recognized in the period received. A donor restriction expires when a time restriction ends or when the purpose for which it was intended is attained. Upon expiration, temporarily restricted net assets are reclassified to unrestricted net assets and are reported in the statement of activities as net assets released from restrictions. The Organization receives grants from the Federal and State governments that are conditioned upon MFBN incurring certain qualifying costs. These grants are considered to be conditional promises to give and therefore are recognized as unrestricted revenue as those costs are incurred. Advertising Costs The Organization expenses non-direct response advertising costs as incurred. Income Taxes The Organization has implemented FASB ASC ASC addresses the accounting for uncertainties in income taxes recognized by an entity's financial statements and prescribes a threshold of more-likely-than-not for recognition and de-recognition of tax positions taken or expected to be taken in a tax return. The determination of tax exempt status is considered to be a tax position taken with respect to the provisions of ASC

13 Notes to Financial Statements 1. Organization and Summary of Significant Accounting Policies (Continued) Income Taxes - Continued The Organization's policy is to evaluate the likelihood that its uncertain tax positions will prevail upon examination based on the extent to which those positions have substantial support within the Internal Revenue Code and Regulations, Revenue Rulings, court decisions and other evidence. It is the opinion of management that the Organization has no uncertain tax positions that would be subject to recognition under ASC The Organization's tax returns are generally no longer subject to examinations by tax authorities for the later of three years after the filing date or the due date of the returns. Functional Allocation of Expenses The costs of providing various programs and activities are summarized on a functional basis in the statement of activities. Certain administrative and other costs have been allocated among the programs based on specific identification or based on estimates of the expenses incurred. The primary activity groups and their related purposes are summarized as follows: Administrative Expenses - Expenses which allow MFBN to operate and provide services to clients, but are not directly attributable to client services. Program Services - Expenses which are associated with food distribution, education, and outreach activities. Fundraising Expenses - Provides for direct mail fundraising and low-cost supplies and services for special events and activities designed to create public awareness and support for hunger-related issues. 2. Fair Value Measurements The Financial Accounting Standards Board developed the Accounting Standards Codification 820, Fair Value Measurements, to establish a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the Fair Value Measurements guidance are described as follows: Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Organization has the ability to access. Level 2 - Inputs to the valuation methodology include (1) quoted prices for similar assets in active markets (2) quoted prices for identical or similar assets in inactive markets (3) inputs other than quoted market prices that are observable from the asset (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. -13-

14 Notes to Financial Statements 2. Fair Value Measurements (Continued) The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value at June 30, 2015 and Common Stock: Valued at the daily closing price. Common stock held are open-end investments that are registered with the Securities Exchange Commission (SEC). These investments are required to publish their daily closing prices and to transact at that price. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Assets itemized below were measured at fair value during the year ended using the market approach. There have been no changes in the methodologies used at June 30, The following table sets forth by level, within the fair value hierarchy, the Organization's assets at fair value as of June 30, 2015 and Fair Value Level 1 Level 2 Level 3 June 30, 2015 Interest bearing cash $ 343,951 $ 343,951 $ - $ - Common stock 160, , Government bonds 3,003 3, Corporate bonds 65,666 65, Alternative investments 23,692 23, Total Investments $ 596,980 $ 596,980 $ - $ - Fair Value Level 1 Level 2 Level 3 June 30, 2014 Common stock $ 123 $ 123 $ - $ - Total Investments $ 123 $ 123 $ - $

15 Notes to Financial Statements 3. Grants Receivable The following is a schedule detailing the balance of grants receivable at June 30: Montana State DPHHS Award "FAM Food Revenue" $ 3,649 $ - Award "House Bill #2" 3,222 2,000 United States Department of Agriculture Award "Emergency Food Assistance Program" 14,462 6,400 Total grants receivable $ 21,333 $ 8,400 The balance of grants receivable at June 30, 2015 and 2014 are expected to be collected within one year. 4. Conditional Grants Receivable MFBN had the following conditional promises to give that are not recognized as assets in the statement of financial position at June 30, 2015 and The grants are reimbursement based contracts that are conditional upon related expenditures being made Montana State DPHHS Award "Emergency Food Assistance Program" $ 92,218 $ 73, Property and Equipment Property and equipment consists of the following: Land $ 67,500 $ 67,500 Buildings 1,221,245 1,221,245 Building improvements 277, ,592 Machinery and equipment 861, ,405 Computer equipment and software 151, ,293 Construction in progress - 85,847 2,578,457 2,527,882 Less accumulated depreciation (1,143,115) (985,324) Total $ 1,435,342 $ 1,542,558 Depreciation expense for the years ended June 30, 2015 and 2014 was $171,878 and $146,563, respectively. -15-

16 Notes to Financial Statements 6. Line of Credit MFBN has one line of credit with a local bank which provides borrowings up to a maximum of $50,000, at a rate of 4.50% and matures on August 1, As of June 30, 2015 and 2014, the line of credit had no outstanding balance. 7. Contract Advances In certain instances, MFBN may request an advance from a grantor to cover anticipated expenses to be incurred for the grant. Accordingly, at times, there may be advances of cash received on grants which have not yet been earned. Such advances are recorded as liabilities in the statement of financial position until expenses have been incurred to satisfy the conditions of the promise to give. There were no unearned contract advances as of June 30, 2015 and Notes and Mortgages Payable Notes and mortgages payable were as follows at June 30: Note payable to First Security Bank due November 2024, with interest at 4.25%, monthly payments of $2,910; secured by building and land. $ 270,276 $ 293,213 Less current portion (23,741) (22,937) Notes and mortgages payable, net $ 246,535 $ 270,276 The aggregate annual maturities of long-term debt as of June 30, 2015 are as follows: 2016 $ 23, , , , ,312 Thereafter 140,149 $ 270, Employee Benefit Plan employees may participate in an Internal Revenue Code Section 403(b) Defined Contribution Retirement Plan. Employees are eligible to participate on a voluntary basis on the plan entry date following employment and are fully vested upon contribution. For the year ended June 30, 2014, made no matching contributions. The plan was discontinued in 2015 and all plan assets were distributed to participant individual retirement accounts. -16-

17 Notes to Financial Statements 10. Related Party Transactions The Organization's mortgage loan is financed by the business of a board member. Refer to the notes payable disclosure note for the details of the transaction. 11. Net Assets Donor restrictions on temporarily restricted net assets consist of the following at June 30, 2015 and 2014: Public policy and advocacy support $ 39,129 $ - Restricted for vehicle, building, and equipment 51,221 - Food distribution support 59, ,932 Backpack program 32,305 70,151 Total $ 182,145 $ 177, Reclassifications Certain reclassifications to unrestricted contributions have been made to the 2014 financial statement presentation to correspond to the current year s format. There was no effect on total net assets for the year ended June 30, 2014 as a result of these reclassifications. 13. Subsequent Events The organization has evaluated subsequent events through September 23, 2015, the date on which the financial statements were available to be issued. -17-